4 55,

VILLAGES OF

PUEBLO NUEVO AND BUENOS AIRES

0 .:..Province of Veraguas, Panama

SOCIAL, ECONOMIC AND ANTHROPO- LOGICAL CUARACTLRISTICS

I.RECOMMIENDATIONS AND POTENTIAL HYDROELECTRIC ENERGY USES

FINAL REP.ORT.

Prepared f or AID/PANAMA

4 CONTR-t'CT NO. AID-525-015T

. - . ovember, 1981

Sby

RUR P.UALDEVELOPME'NT SYSTE.S

r

ii L~~T 1'C NOA1N .C ,R U ,I C ~j'. r

Streov-, N TABLE OF CONTENTS

PART I

VILLAGE OF PUEBLO NUEVO

Section Title Page No.

A DESCRIPTION AND DATA 3

1. General Characteristics and Location 3 2. Socio-Economic Character­ istics 8 3. Evaluation of Municipal Institutions 10 4. Socio-Anthropological Characteristics 15 5. Economic Characteristics 18

B RECOMMENDATIONS AND POTENTIAL HYDROELECTRIC ENERGY USES 33

PART II

VILLAGE OF BUENOS AIRES

A DESCRIPTION AND DATA 36

1. General Characteristics 36 2. Socio-Political Character­ istics 43 3. Evaluation of Municipal Institutions 48 4. Socio-Anthropological Characteristics 61 5. Economic Characteristics 65

B RECOMMENDATIONS AND POTENTIAL HYDROELECTRIC ENERGY USES 71

i APPENDICES

APPENDIX A LIST OF DEVELOPMENT PROJECTS FOR A-i PUEBLO NUEVO AND BUENOS AIRES B LIST OF VILLAGES' RESIDENTS B-I INTERVIEWED LIST OF GOVERNMENT OF PANAMA AND B-3 DEVELOPMENT ORGANIZATIONS' PERSONNEL INTERVIEWED

C COMPOSICION DE LOS SECTORES PRIMARIO, C-I SECUNDARIO Y TERCIARIO, POR RAMA DE ACTIVIDAD ECONOMICA (GRANDES SECTORES ECONOMICOS)

D REFORESTATION PROJECT PERSONNEL D-i

E PLAN DE CAMINOS PARA AREA INDIGENA E-1 DE VERAGUAS

±i INTRODTTrTIO! '

Throughout the second half of August, 1981, personnel from Rural

Development Systems (RES) divisiun of International Economics

Group, Inc. (IEG) visited and studied two isolated villages

(Pueblo Nuevo and Buenos Aires) of the Veraguas Province, Re­

public of Panama.

The studies conducted had the twofold objective of (l) estab­

lishing an information baseline to determine the level of dev­

elopment if both places and (2) determining potential uses of

newly introduced hydroelectric energy whose impact on presently existing conditions would be evaluated by future studies.

In order to accomplish these objectives, the following tasks were performed:

1. Survey of social, economic and anthropological char­

acteristics of these areas by interviewing villages'

inhabitants.

2. Interviews of 1high level and field personnel of govern­

ment and other aqencies actively working in or connected

with support tasks in either or both villages.

3. Extensive review of pertinent literature. Results of findings and recommenCations for possible future

action are submitted in this.report, as follows: Part I (Pueblo Nuevo); Part II (Buenos Aires). Each village study is divided

into Section A (Baseline Information) and Section B (Recommen­

dations and Potential Hydroelectric Energy'/ uses).

-/Hydroelectric energy plants are being installed in both villages.

2 SECTION I

VILLAGE OF PUEBLO NUEVO A. DESCRIPTION AND DATA

1. General Characteristics and Location

Pueblo Nuevo is a remote Panamanian village located at

Long. W. 80' and Lat. N. 8'321 in the mountain range of the

Corregimiento Chitra, District of Calobre. Province of Vera­

guas. Its averace elevation is between 800 and 850 meter's

above sea level. The climate is tropical and consequently

hot and humid, althoagh somewhat temperated by cooling breezes

common at high altitudes. Over the last twenty years, annual

rainfall has averaged (arithmetic mean) 3,927.9 mm, with one

year at 1,679 mm and other years over 5,000 mm.- Pueblo Nuevo's location in the traditionally forgotten mountain range has kept it in isolation from the outside world. Recent efforts to better integrate this area as well as others into the main stream of national life have included a good deal of attention to the development of infrastructure.

Essential tasks to accomplish this process of integration arid development have resulted in the promotion of the following pro­ jects:

I/See IRE's tabulsations for rainfall data registered at Loma Liana fv-omr 1960 Lo 1975. T[RIM., Proyecto c-ohdeetro for Pueblo :uevn.

3 7 ~t g(; '<1

H)-H. .-

H U)~I ro Q) 0 . W 0 -H

0) 0 N4 )

r H H D 44i (D~lC 0d)f tt~ 0

Q~ 0 4 . U~ E- r P4 z Hz N -d z

00

A(1 U)H

0 0 4 ~ % t% 0, .­ u~~~~0 Qj ~ ~ ~ .5 I rd .I o "iclo Basico (School, Grades 1-9) o Hydroelectric Plant, 80 KW o Plans to imurove an existir.: and dangerous dirt road o Health Center o Reforestation Program o Initial work to create a production cooperative to improve m.arketing conditions for coffee, the only significant cash crop in this area. o Fish Pond

Each of these projects will be discussed at length later

in this section. What is meaningful at this point is to con­

sider the integrated planning and development of such a com­ munity through the synchronage operation of infrastructural

components.

Clearly, at this stage, there are important ingredients

for the development of this area. The above-listed projects and programs are geared to generate forward linkages. However, major emphasis on intangible inputs as part of the development scheme shculd also be considered. At that point, it will be possible to attract higher levels of attention and create in­ centives for local residents to move towards autonomy and use initiative to attain better levels of economiz activity. Sug­ gestions for this possibility are submitted in Section I-B,

Origin of the Settlement. The community of Pueblo Nuevo has existed for at least 80 years, according to Placido Urriola,

5 one of its oldest inhabitants. Sr. Urriola's grandfather, a

Spanish immigrant, was one of the pioneer settlers of this area

in the 1880's. Before that time, the land was part of the

Guaymi Reserva Indigena. "Bajo La Palma Coco," an area today

known as "Abajo" (below) or "de Abajo" (from below) was the

first area settled. Pueblo Nuevo and Piedras Gordas, just

above and somewhat higher on the mountain slope, followed in

the settlement process early in this century.

Today, the three areas are comunally called "Pueblo Nuevo,"

yet within the community the three areas, or neighborhoods, are differentiated by their respective names, i.e., Pueblo Nuevo,

Piedras Gordas, and "Abajo." This report includes information on Piedras Gordas and Pueblo Nuevo since thc.se are the areas which have consolidated into one single physical village and are the recipients of electricity generated by the AID/IHRE small hydroelectric project. Piedras Gordas encompasses 14 families;

Pueblo Nuevo 26; and "Abajo" 10.

The 1880's was the decade of original settlement for the village. Along with Silvestre Rodriguez, the families of Rafael

Saturno, Jose de los Santos Rodriguez, Federico de la Cruz and

Enrique de Arcia moved into the area. Descendents of these families along with newer arrivals constitute the growing pop­ ulation, that despite its conditions of poverty, has retained a good number of inhabitants. Co-mparisons of census data from

6 1970 and the present show an increase of over 30 percent in the number of dwelling units.. The 1970 National Census shows

19 houses and 71 inhabitants for Pueblo Nuevo section of the area, while today the.re are 26 dwelling units and a significant increase of inhabitants in the same area.

Obse vations and a survey of the area revealed a socio­ economic level of development that can be classified as some­ what above minimum subsistence, i.e. , the population produces enough to feed itself and also has monetary revenues result­ ing from the sale of coffee.

Coffee production as well as the cultivation of other agri­ cultural products and cattle raising constitute the simple economy of tne area. Land tenure, real estate, and factors of production administration occur under "private property" concepts. This is different from what occurs wit, the inhabi.­ tants of the other area under s-udy, i.e., the Village of

Buenos Aires, where much of the production and land tenure oc-­ curs under traditional Indian systems of communal ownership.

7 2. Sn-io-Tonomic Chracteristics

a. Population and Popilation Concentration

The 50 dwelling units that make up the community of

Pueblo Nuevo are spread over an irregular, elongated area

of approximately .20 square kilometers or 200,000 square meters. Map I-A delineates the distribution of buildings

(houses, school, etc.) in that area.

Most of the village dwellers have small parcels of

land attached to their houses. In addition, most inhabi­

tants defacto own and cultivate other parcels of land re­

moved from the immediate proximity of the village, often

as far away as two to three hours by foot. There is al­

most complete lack of transportation facilities in terms

of both vehicles and roads. The only motor vehicle trans­

portation in the area is the unscheduled trips of Govern­

ment and donor agencies, such as AID, on official business,

that travel the distance from Pueblo Nuevo to the Inter-

American Highway and often to Santiago and the City of

Panama. Otherwise, very few motor vehicles, if not more

than one (owned by a village resident),cover that distance.

Despite its still humble condition of development,

Pueblo Nuevo has the potential for becoming an important

center of interaction for inhaLitants of adjacent areas.

8 This iq due to the fact that considerable infrastructural elements such as the Ciclo Basico (attended by children from areas as distant as three hours away by foot), the medical unit, electricity, and the road that will probably be improved in the relatively near future, are planned or already exist. Pueblo Nuevo is an old settlement and has resident stability that will be reinforced by better infrastructure.

The question thaL remains is how to accelerate the creation of employment sources, increase productivity, and promote production to make this community more af­ fluent as expeditiously as possible.

9 3. EvluaLion of '4unicial Institutions

a. Public Services.

Water, SOI...ae, electricity are non-existent in an

organized and infrastructural way. However, the hydro­

electric system will provide electricity for houses,

street lamps, and other needs in the school, infirmary,

and other central facilities (see hydroelectric plant).

b. Health.

The Ciclo Basico includes an infirmary which is al­

ready established. It is operated by a paramedic trained

at a higher education institution. The role of this in­

dividual is to provide first aid and medical advice to

students from the Ciclo Basico and the population-at-large.

Medical services on a fully professional basis do not

exist in the area. Availability of electric power (from

the hydroelectric plant) will help this service maintain

medical supplies at cooler temperatures.

Besides this paramedical facility, the village popu­

lation often resorts to "curanderos' for health problems.

The "curanderos," in a way typical of rural areas, prac­

tice medicine with the coibined use of t.=O nal herbal

preparations, drugstore mecdicinIe, and psychological in­

fluence (for more detaile] intc.cprcctjon of rural medi­

%ine, see icalth nr btios .L'.ires section)

10 c. Education.

A first to ninth grade "Ciclo Basico" to serve Pueblo

Nuevo and adjacent communities operates in this village.

Students come to this edurcational facility from several

miles away. Children .hose homes are two and even three

hours away from Pueblo Nuevo must cover that distance on

foot. Long distances between residences and the school have determined the need for a program that provides room

and board. Those children whose homes are too distant

from the school stay at the dormitory throughout the week

and go home on Friday afternoon in order to spend weekends. with their families.

The school instructs students in a traditional curri­ culum. However, at higher levels it emphasizes some prac­ tical subjects that ca:. later be used to secure employment and help the individual and the community.

This educational center should also help the community in areas connected with adult education where subjects such as agricultural technologies, management, marketing and other related activities could be taught. d. Credit.

Pueblo Nuevo is too weak .an economic environment in terms of population numrber and disposable r:evenue to have a credit insLitution op,:rating on a continuous basis.

11 However, agricultural extension programs through MIDA

have provid.ed access for the population to get credit for

agricultural purposes, mainly for the improvement of cof­ fee production.

These programs, extended throughout coffee produc­

ing areas of Panamanian provinces, aim at using financial

and other resources to improve quality of the product

through technological upgrading, i.e., there is an effort

to use better coffee varieties and develop a better know­

how for coim-tiercialization of coffee and/or other agricul­

tura). products.

MIDA is making efforts to replace "criollo" coffee

with the "caturra" coffee variety. This variety, which

originated in Brazil, should be rather easily adaptable

to the Pueblo Nuevo area. However, the local popula­

tion feel.s worried about mwking initial sacrifices in

order to be able to finance a variety that not only re­ quires new seed and other inputs but which requires three

years of cultivation before harvesting for the first time. 1 /

MIDA is undoubtedly carrying out a good program but

this change proposed represents an economic burden and

a psychological pressure that will take some time to

OVC2rcome.

Production 1:: on a yearly basis after the first three-year growin, periocd.

1.2 What is important along with the credit availability

is the need for MIDA and other institutions to work to­

gether in assisting the population in planning production

and marketing schemes that could provide additional reve­

nue to the area. Such a project should not be very cost­

ly and could result in improvement of both revenue and levels of motivation for the population.

The Ciclo Basico, with electricity available in the

evening, could be used to conduct short seminars to

help adult members of the community learn better ways to

use credit available to improve production and how to mar­ ket their products more successfully. e. Infrastructure.

Pueblo Nuevo is being provided with important infra­ structure of which the main components are:

(1) Road Construction: Construction of a new pene­

tration road is presently approved. This road

should be operational throughout the dry and

rainy parts of the year. Its completion will

have significant impact on trade between Pueblo

Nuevo and market towns along the Inter-Ainerican

Highway. It will also be an asset to the commer­ cialization of coffee.

13 (? Electric Energy. The advent of electricity

through the installation of a 50 KW hydro­

electric system should result in a number of

village changes at various levels, namely:

o Production (productive uses) o Educational (school and home) o Domestic Work (non-productive) o Domestic Work (productive) o Leisure o Family interaction

Energy uses, other than those originally con­

sidered by AID/IRHE, are suggested in Section

I-B.

14 4. Socio-Anthropological Characteristics

Defined from a broad perspective, institutions are signi­

ficant and persisLent elements, practices and relationships that focus on specific problems or needs of society. From that perspective the kind of institutions are main traditions such as marriage, land tenure system, production practices, etc. However, the term "institutions" is also used to refer to organizations such as business, government and others that tend to support the overall practices as above-defined.

From the broader perspective, the most important insti­ tutions for this study are those that relate to the possible improvement of the socio-economic needs of the village(s) pop­ ula tion. This potential improvement is without a doubt the prcduct of complex mix patterns; however, the main interest here is the attainment of production goals whose impact would result in the upgrading of individual and/or communal welfare. Thus, the main institutions that are considered are those of property use (,mainly land) and production practices. On a second level, there is importance identified with the analy­ sis of organizations (at times called institutions) that could effectively support development, e.g., those described under

No. 3 a, b, c, d. e), Evaluation of Municipal Institutions.

13 a. Land Tenure System.

The area of Pueblo.Nuevo was popu].ated by poor peoo­

ple unable to gain access to prime land in the mainstream

of agricultural and general ec,..romic production who resorted

to what was left. Thus TIidian land became the defacto

place of settlement for poorer segments of the population

who pushed the original natives into even remoter and less

productive areas. The settlement of )uebl.o Nuevo was

a defacto one where most of the people simply took poss­

ession of the land by "squatting." The defacto settler, conscious of his difficulties

in acquiring land, became a self-centered, independent

owner, incapable of being forced off his land. This is

the kind of situation that prevails in the Pueblo Nuevo

area. The individual producer is highly aware of his

right of ownership to the land he settled or which was passed to him by an ancestor who most likely took poss­ ession of the land under the same principle. Landowners in the Veraguas mountains are well--known and their hold­ dings respected as pri vate property by the immediate com­ munity. b. Socio-Political Orcanization.

The p-!tterr's of socio-political organization in Pueblo

Nuevo foll-;. a %;oc-lty.AcI to 7ananian communities, i.e., the popui ation I:hrcuc!- th. "junta ccmmual" clecLs represen­ tatives of the people for the loc:jI, regional and national.

16 leveis. The representative el.ected to the National Con­ gress has more relevance since it is he/she who can pro­ mote activities before the central governme:.t that could result in exogenous il-fl)UtS to help the local population.

The role of the representative before the National Con­ gress is therefore an important one, and the prestige of the appointment is the highest among those of elected officials.

17 5. Economic Characteristics

a. Overall Analysis.

Pueblo Nuevo (see street and population map, Map 6a),

is a village made up of approximately 50 adobe houses with

zinc roofs. The population is approximately 260 persons or an average (arithmetic mean) of 5.2 per dw.1ling unit.- /

The population lives soewhat above subsistence level,

i.e., each family feeds itself with its own agricultural

production, lives in a house that is defacto its own, and

clothes its members and purchases essentials with returns

derived from the sale of coffee and to a much small.er de­

gree, from the sale of other agzicultural products.

The economic system is exclusively agricultural.

Coffee is the only meaningful cash crop in the region.

It is also the type of activity that places the co~mnunity

somewhat above minimum subsistence level. Nevertheless,

other agricultural pooduction has some potential for iin­

provement and incorportion in the economic process, es­

pecially if ways to avoid spoilage are devised. 2 /

Data rcsultinu from surxey was matched against: IRH's data (RE: Pueblo N'!uevo IIvdroc ectric Plant £tudy). Similar pop­ ulation results %-.,ore,bt:ine. 0ne-th rd o t;c. fruit and vecjeta!h1.: prclduct.on i-; wasted due to lack of kno.!.-Kqe of food re:. rvation techni clocs. See Socuior fc, Food arml1 'ocJ fro::rfrat.o,.eo: additional an.,,sis of t sl,- :.;uc.

.1; Cattle raising is another agricultural activity of

importance in the area. However, and despite claims to

the contrary, it is not a highly efficient type of enter­

prise. Cattle raising is most often uneconomical and damaging to the physical environment. It requires the

use of large parcels of land (approximately one Ha. per head) and involves the use of constantly deteriorating

land that without proper use of land rotation, fertilizer, and upgrading, is quickly losing its production potential.

This system is explained in the economics of the Guaymi

(see section on B3uenos Aires). Cattle raising is a family activity where land and labor intensive work provides the requirements for having a few head. Cattle are expensive to raise. Their chief function is "storage of value."

Having cattle replaces the need to have a savings bank.

Owning cattle also represents "prestige." It is both a banking systcm and a social status condition, but it is not a money-making proposition under existing conditions in the area.

Production occurs, as mentioned before, under strict concepts of private property whereby a producer (agri­ culturist) al.ong with members of the family own the fields, plow the land, harvest and use product's to feed the family, and the st.rplus (mw i nly coffee, in the Pueblo

Nuevo area) is sc id by :, . of,.L i1divid'ua] transac Lions.

.9 The average size production unit is somewhere between

1 and 3 has. It often Occurs that each house will have

a small parcel attached and the same fami' y will also

have one or more s:a.l parcels to tend somewhat distant

from the house. In some cases, those parcels are one

or two hot rs away (by foot:) from the village.

As things are, there is abundance of disposable time

for a family to tend productive activities throughout times

of the year when they are not busy sowing or harvesting.

Labor per se is a minor consideration in their assessment

of production costs. Generally, it can be said that the

marginal cost of labor tends toward zero throughout a

major part of the year. Individual cost of labor is sub­

stantial only at timc as mentioned above and during

Zafras when people sometimes go to worh cutting sugar cane

and receive cash wages. ThI-s, however, is a transitory

income for the village since that money is used to import

additional foodstuffs and manufactured goods.

b. Product. cn.

Economic production exists2 only in the primary

sector. l / Besides coffee and food production, the only

other economic actjvities carr-ed out on a vry small scale

are two stores w.i.th scant Jcv.wLs of inventory. These

/See hC'endA ' fo, out l .o of j'i i,,,d : ieJ in h ,:i.iry S eC 0o 1. 1 ]' "" t 0"" seco U v .K tert[i i : r,,'-.] ":~of c 0c .c": Q dCc'.civo rs a.n ci ­ fined by the Contrailoria,

20 FLOW CHART 1 MARKUP FOR COFFEE PRICES From Production to Wholesale Distribution

PRODU2C ER MI DDLEMAN

nnuts for Production Transportation Cash Transaction

Reseeding Arrangements Similar Fe r ti liz er Bete..n Product L!abor Producer and - from Middleman ­ - many Tilling + Growing + Harvesting Coffee , /Producers

Production Costs + Producer Profit = Middleman Buying Price

+ Middleman Profit

Exporter Buying Price

COFFEE COST (In Approximate Money Terms) iProduction Costs Per Quintal I Producer Profit

1$10-15 per Quintal + $65 = $80 + $30 = $110 1(not including labor price) middleman middleman Expo-ter buying profit Buying I-______price Price two business enterprises, owned and bperated by local

people, have minimal supplies and seem normally not to have much more than a few cans of food and some drinks

(sodas, beer) in the dry season. Transportation costs along with a minimum of working capital and very little demand made thiese enterprises barely profitable.

Coffee Production. Production takes place under strict concepts of private property where a producer

owns his land and tends his fields with the help of his immediate family. He seldom hires additional assistance. He also markets his produce, usually to intermediaries,

who, in turn, sell large quantities bought from many small producers to coffee exporting firms established in the capital or other market towns. Traditionally, coffee pro­ duction goes through the 'itages indicated in Flow Chart 1

on the following page. Coffee produced by each independent producer seldom exceeds four quintales and the average (arithmetic mean) is 2.50 quintales per producer1/ Totalreienue2/ for

2.5 quintales (250 kilos) is around $320 per year at the

producer selling level and $440 at the middleman selling

-/Information provided by personnel from the mino Autonomo Cooperativo. Instituto Pana­

2 /Total revenue resulting from production of "criollo,' coffee. Other coffee varieties are being introduced for production in the area through a MIDA project. See page xx for more thorough discussion.

22 price. Physical inputs (seeds, fertilizer, etc. and cost of labor) are not clearly accounted for. How-:ever, the only cost accounting that makes sense is that of physical inputs. Labor costs are disregarded under the concept that marginal cost of labor under those circumstances tends towards zero.

Self-reliance is a strong trait among members of this connunity. However, this individualistic conept is presently carried to the extreme at which point it does not make sense in an economic way, i.e., (1) coffee pro­ duced in Pueblo FEuevo is individually transported by a producer to the market place, and sold to a middleman who, in turn, sells coffee acquired from wany similar pro­ ducers; (2) coffee sold this way comes in small quantities and the producer can only sell his product (coffee) with­ out having gained "value added," from potential process­ ing.

Thus, from the above flaws in production (including processing) and distribution (transportation and avoid­ ance of middlemen),it is clear that there are two econo­ mic factors that must be consider.rd: (1) transportation and (2) coffee processing. At the production and dis­ tribution sidles, it would be possible to decrease costs

23 through economies of scale by acquiring inputs (fertili­

zer, seeds, etc.,, processing coffee, and transporting

the final product to an optimum market by means of a

coffee producers association. -

Coffee is harvested in the Pueblo Nuevo area and

in general in Corregimiento Chitra somewhere botween

late August and March. This stage of production is sim­

ply the result of the degree of coffee berry maturity.

After harvesting, coffee is taken by the individual

producer to a place, normally his own home, where it is

laid on the ground or over another surface to be sundried

vyving this simple but not efficient method. After the

drying stage is completed, coffee is sold by the producer

to a middleman. Transportation of the produce is nor­

mally the responsibility of the producer. When it is

done by the middleman, there is a price reduction for

the producer (seller).

The middleman receives the produce from many small

producers, processes the coffee, and, as better quality

grain, sells the product to exporters in the city or a main market tcwn.

A-'coffee producers' cooperative is in the process of organ­ ization, under technic-a.l support from Instituto Panameno Autonomo Coopprativo (IPACOOP) and possible financing from international sources.

24 The loss of revenue for the producer occurs at several stages previously identified (economies of scale at the purchase of inputs stage, loss of value added, economies of scale of transportation) and hereafter des­ scribed in an expanded form.

Producers' Unfavorable Economies of Scale: o Community members have traditionally acquired essential inputs, e.g., seeds, fertilizer, etc. as independent entrepreneurs. There exists the possibility that a coffee producers' association or cooperative could buy those inputs wholesale and reduce individual costs of production.

o The same condition applies to transportation systems. The producer presently deals with transportation problems individually An associotion/cooperative could gain from better economies of scale.

"Value Added" Loss:

o Processing coffee in the village through the es­ tablishment of an association/cooperative and the establishment of a prccessing plant should enhance characteristics of the products and "add value" that presumably could result in higher levels of total revenue and profit for partici­ pating producers. Simultaneously, it will be possible to consider and implement uses of coffee byproducts such as the following:

25 FROM COFFEE nULP:

Ensiling --- Coffee Pulp Silage --- Animal Feed Drying --- Coffee Pulp Meal --- Animal Feed

Pressing Coffee Pulp Bagasse

Juice --- Microbial Protein-Rich --- Animal Process Produce Feed Extraction --- Coffee Pulp Caffeine

Extraction --- Coffee Pulp Protein

Natural Fermentation --- Organic Fertilizer + Energy (Gas)

Other Uses

FROM COFFEE HULLS:

o Animal Feed

o Solvent Extraction -- Residue Wax o Fuel o Charcoal + Acetic Acid

FROM MUCILAGE:

o Pectic Enzymes o Microbial Procuss o Pectins

PROCESSING OF COFFEE SEEDS:

o Roasting o Grinding o Packaging o Wh-'Lesaling

26 Main Stages of Coffee Berry Processing. After har­

vesting, coffee goes through the series of processing

stages mentioned above whose objective is to separate

coffee berries into its main components, i.e., coffee

beans, mucilage and pulp. Each component has potential

economic uses; however, it is the coffee bean portion of

the total product that constitutes the main economic

part of this industry. Byproducts should also be con­

sidered for economic benefits of a secondary level.

The main steps in processing coffee are:

o Pulper o Drying o Hulling

o Roasting/Toasting

First Byproduct (Pulp) Separation of pulp from beans by mechanical friction. Pulp is first byproduct.

Seond Byproduct (Mucilage) Either whole or hydrolyzed is the second byproduct of coffee berries

(process described above is commonly used in coffee mills that have abundant water supplies)

After mechanical or chemical (includin fermentation) re­ moval of mucilage, coffee beans are washed before de­ hydration., The initial de­ hydracion step is sun-drying. Later the berries are further

27 dried in a specially de­ signed cylinder. After dry­ ing, the seed2s are removed by fractioning the hull. Third Byproduct (Hulls) Hulls represent the third byproduct.

PERCENT COMPOSITION OF COFFEE BY WEIGHT (Dry Berries)

Pulp 30% Hulls 11 Mucilage 7 Coffee Beans 52

100%

Undoubtedly, the main economic component of coffee

is the coffee bean itself. However, the use of coffee berry byproducts for other economic uses should not be

disre, arded.

The small quantity of energy needed to process cof­

fee berries and later roast, grind, and package them

should be derived from the small hydroelectric plant al­

ready installed in Pueblo Nuevo. However, it will be nec­

essary for a cooperative formation project to carry out

an evaluation of the equipment to be used for coffee pro-­

cossing.

Discussions between personnel from IPACOOP and RDS

divi ,-ion of IEG, inc. , revealcd consensus as tc the main

28 elements, needs, and objectives of a proposed associa­

tion in the form of a producers' cooperative. The only

point of disagreement was related to IPACOOP's original

idea to use diesel engines to process coffee. It is in­

deed clear from the above analysis that electricity needed

to process coffee can be effectively supplied by the

newly installed hydroelectric plant.

Economic Differences Among Some Coffee Varieties. Al­

though the "criollo" variety of coffee has been tradition­ ally produced in the area, other varieties are now being

introduced. This is especially the case with "caturra" coffee and "geisha" coffee to a lesser extent. "Caturra," which Brazil has been extremely successful with, is also doing well in the Pueblo Nuevo area. Results of its use are as follows:

One Palo (tree) produces 1 Lata (25 lbs.) of coffee berries per year, every year. Less productive is the

"criollo" variety which produces 1 Lata (25 lbs.) every two years, i.e., one year the tree produces coffee and the next one remains idle. Thus, "caturra" can be a much more convenient variety for the area. However, there will be additional expenses associated with the adaptlation of this new variety to the environ-ment, i.e., the acquisit.ion of inpuits such as seed, a-c:ui-itron of t1hnoo.. ical kno.­ how, etc., besides a waiting -eriod of ap to three years to produce the first crop.

29 Banco Desarrollo Agropecuario (BDA) is offering loans

(see Credit Section of this report) to improve coffee

production. The emphasis of this program is to change

from "crioll&" to "caturra" coffee which. as mentioned

above, is much more productive and is adaptable to the

area's climatic conditions.

Also, combined efforts of the population with exo­

genous institutions could result in the association of

producers who could process and market their product

jointly.

c. Food and Food Preservation.

The main crops in the Pueblo Nunvo area are: coffee

(which is the only significant cash crop) and subsistence

food crops - corn, rice, beans, yuca, name, and fruits

(grapefruit, oranges, tangerines, bananas, etc.).

Except for coffee, the rest of the vegetable products

are used for subsistence needs almost exclusively. How­

ever, a percentage which has been estimated through local.

accounts to be in the neighborhood of 30 percent is

wasted due to spoilage. This is especially true in the

.case of fruits which are picked and used without regard

for logistics control and possible use during the months

of food scaicity. Other prishable vegetable production

suffers the sar., fate, with th. exvimptien of corn and beans.

20 C]early, a possible solution worth considering to improve

the supply of food throgghout long periods of time with­

out suffering any deterioration would be the preservation

of fruits and other agricultural products which are pro­

duced with a surplus above the consumption levels during parts of the year.

Two basic techniques that could be considered for

food preservation are: (1) vacuum bottling and (2) dehy­

dration. Vacuum bottling has the advantage of being a

simple operation with need for practically nothing except

the raw materials and the containers. The only drawbacks

are dangers that can result in terms of toxic formations

if high levels of hygiene and careful processing are not

observed. The other system, dehydration of fruit and vege­

table products, could be safer, conducted at a centrally

located base, rather than individual households. TV could

have a better quality control. Its main drawback would

be need for dehydration equipment which undoubtedly re­

quires securing some kind of financing. The dehydration equipment could also use electric power from the small hydroelectric plant.

Additional advan.ages to using this process would be the fact that cost/benefit ratios for this kind of pro­ ject would be clearly Oetcrminnd, and if bnefits surpass

31 costs, there would be ample room for project replicability

and benefit for this and similar target populations.

In synthesis, the main advantages of the suggested changes will result in the following:

o Salvage of e:xisting surplus production needed for lean months each year.

o Training option for people in the area of food preservation.

o Some job creation opportunity.

o Incentive to produce fruits and vegetables which are pro.;ently disregarded due to the difficulties for preservation and yet are easily grown in that geographic area.

32 B RECOiMENDATIONS A-.1D POTENTIAL HYDROELECTRIC ENERGY USES

The main possible uses of electricity besides those iden­ tified by initial AID/IRHE projects (Ciclo Basico and street and residential lights) are: (1) Coffee processing

(2) Food processing for preservation (dehydration and/or bottling)

(3) Other potential uses

(i) Coffee processing is the main and natural use for increas­

ing village total revenue. Adequate planning for communal

management of post-harvest handling of the coffee from a

physical and managerial centrally-located facility should

result in economic benefits, i.e., economies of scale ad­

vantages in transportation and production inputs acquisi­

tion, feasibility to process coffee in larger quantities

(small, independent producer cannot process coffee econo­

mically) , and group strength to market coffee and negotiate

better prices (probably without having to use middlemen)

Considering these elements and without including cost of

financing processing equipment, it is possible to se that

total revenue from this cash crop could improve by more

than $30 per Quintal (100 kilos) since that by itself is

the middleman profit, i.e., .-0 above the price per Quintal

paid to the producer, which is; eO . This means that there

33 is a potential for an increase in total revenue of more

than 35 percent. The use of hydroelectric energy for the

new plant is of utmost importance for this project. Due

to the small quantities recuired for those needs and the

fact that use can occur at non-peak hours, the process

should work effectively.

Further research is iunediately needed as to the

costs of implementing the organization of a coffee producer/

processing/marketiig cooperative. Main steps in this

direction have beon undertaken by Instituto Panameno Auto­

nomo Cooperativo (IPACOOP). Similarly, personnel from

IEG, Inc. are also researching this area at its owns ini­ tiative and outside the scope of this report. i /

(2) The Ciclo Basico could provide training through brief sem­

inars in areas connected with household economics and logis­

tics. That way it would be possible for the population,

especially the women who deal with household chores, to

make estimates on agricultural produce (fruits and vege­

tables) surpluses. That surplus, rather than being wasted

through neglect, could be processed in simple and useful

ways. If a form of cooperative agreement is reached for

this purpose, probahly the same central facility used for

coffee processing could respond to these rzeeds.

specificl: ions on tho_se findincjs ,.:i bc ;-)Io\,dod to AID as they become ava:],) e.

34 (3) Little if any other possible uses arE! identified with pre­

sent production in the area. Other considerations are

based on the possihi l.ty of introducing production systems

for simple mc facture of cjoocds whose main markets would

not be the immediate are- but rather larcTer towns along

the Inter-luerican llighway. The introduction of exogenous

indust::y is a more difficult task, although its feasibility

is somewhat enhanced by the development of infrastructure

in Pueblo Nuevo.

Besides physical inputs that are needed for develop­

ment purposes, it Js necessary to consider that populations

in areas such as this are used to an independent entrepre­

neurial attitude. This is a quality that could be rein­

forced since it could be a point of departure for moving

into a more dynamic state of :)roduction and distribution

once infrastructure is made available. Pragmatic under­

standing of production techniques and marketing and manage­

ment a:aong the population should result in an expansion

of the production possibility curve. That w.,ould tend to

increase employment and would undoubtedly help in creat­

ing incentives for people to remain in the area, producing

agricultural products which are of much importance for

the regioni and tho nation.

35 SECTION II

VILLAGE OF BUENOS AIRES A. DESCRIPTIO111 AND DATA

1. General Characteristics

a. Location and Basic Data.

Buenos Aires is a remote Guaymi village located at

Long. W. 810 27' and Lat. N. 80 30' in the mountains of

the Corregimiento El Prado, District of Las Palmas, Pro­

vince of Veraguaz, Republic of Panama. Average elevation

is 900 feet above sea level. The climate is tropical and

humid with average temperatures above 800 F. and annual

rainfall above 2,500 mm.

Access to this area is difficult and motor vehicle

transportation during the rainy season is only possible

with double traction jeeps or trucks during morning hours

when previous evening rainstorms have subsided and the

dirt road is relatively dry. Under existing road condi­

tions, it often takes three to four hours to cover the

30 km distance by motor vehicle from the paved Inter-

American Highway to the Village of Buenos Aires.

This village is made up of 30 families scattered

over an area of 0.16 square kilometers or 160,000 square

meters. This obvious subsistence economy area feeds

itself by the cultivation of fields adjacent to the vil-­

lage. Production conditions are extremely harsh due to

36 a combination of low quality lands, rugged mountainous terrain and use of traditional uneconomic practices. Iso­ lation from suppor; mechanisms to help induce improve­ ment were an additio: al liability to the area. However, a good degree of attention is being paid to this commun­ ity through various development schemes, e.g. , hydro­ electric plant installation, plans to improve and con­ struct a road, Ciclo Basico copletion, etc.

1Iowever, neither the availability of electric power nor the road by themselves constitute enough input to improve living conditions. It is clear that additional intangible inputs such as management and technological knowhow are required by this and similar villages in or­ der for the population to effectively and constructively use elements of infrastructure. Possible means for in­ proving management, marketing ,,nd technological knowhow along with recommended uses of newly introduced electri­ city will be discussed in Section I!-B of this report. b. Ph' sical Descri .tior.

Map #1 provides a view.; of the Village of Buenos

Aires' location within the Veraguas Province; Map 1 2 provides a view of Veraguas within the Republic of Panama. As mentioned above, the Village c: BuenCs Aires is made up of 30 (-.el liv: uni . Be ides the4.e residence,

37 N P # 2

°,.-,

/ 3

1 f ".- .... ': ' ,I!<. () '7 -. c/; " "' '"

'.-.r ' . - -. ",..2 -,'. \C - (9 U ",.-..,- ...,s. ', ,...:

\., "".N: : f . -

A .O.:B .'.. A,," t • (4'­ ,,. _ / 0ROE'O

07

C:J / ag'S A

'NN (X ...... : ,j,.. ,,i ,' / t ,,"LO ,

C C-' \, ,--.. # ......

,. : , .i - MAPA DEL PUEBLO DE BUENOS AIRES

OF THE VIL7LAGE OF BUENOS AIRES) SOURCE: IRHE MAP (MAP LEGEND: 1-27 Dwelling units

/- - - S

U,­

r--­ - i L : . ...

-T­

t)i

X) .'. l -­ . ­ -

,)/

' "--,'­ the only other buildinqs are for support services, namely:

(1) a small medical clinic, (2) a new school building

(Ciclo Basico) , and (3) a combination residence-store

(sparsely stockcd)

In addition to those structures, and somewhat more removed from the village, although still at a short walk­ ing distance, is a RENARE building which houses permanent staff members from that institution and stores supplies for the reforestation project (see description of the reforestation project under support institutions). There is also a separate, smaller building, used as a storage facility for foodstuffs used to pay local residents for work contributions toward the same project. Buenos Aires also has a fresh water fish (telapia) pond administered by DINAAC (Direcion Nacional do Acuicultura), a division of the TMinisterio Nacional de Desarrallo Agropecuario (MIDA).

Other government agencies, as w%--ll as AID., which has been responsible conjunctly with IRHE for the develop­ inent of the hydroelectric plant, have been carrying out work to support the betterment of this area. Specific information on these activities will Le described under Evaluation of Municipal Institutions.

38 c. Guaymi Soo-Economi.c Backaround

The Gua',.,i. population is found almost exclusively in the western provinces of Panama (Chiriqui, Bocas and

Toro, and Veraquas) The 1930 National Census showed a total Guaymi population of 16,161 in the Republic of

Panama with major concentration in Chiriqui (63%) and the balance distributed between the Bocas and Toro and

Veraguas provinces. Recent decades have witnessed much

Guaymi intra-provincial migration due to their need to find both land for cultivation and settlement guarantees against potential expulsion from lands often unright-. fully claimed by other groups.

Recent population assessments (2) put the number of

Guaymi located in the Veraguas Province at approximately

5,000; the figure for total Guaymi population in the three provinces is 56,000 people, or over a threefold in­ crease in 50 years.

Conversely, while the Guaymi population has steadily increased in the past half-century, their territorial tenancy has drastically decreased. This is especially true, but not exc..usivc, of the province of Chiriqui, where cattlemen from the lowlands have pushed the Guaymi higher into the Corcdillera (motintain ranc.e), thus defacto expropriatinci Indian lands for use as cattle pasture.

39 The inverse correlation between Guaymi population

increase and decrease in the quantity and quality of

available land for this indian population has generated

much strain on the earning capacity of Guaymi land settle­

ments.

Of all Guaymi groups, those of Veraguas as generally

recognized as the most acculterated and economically im­

poverished ones. Representative of this condition is the

Village of Buenos Aires and adjacent areas where the pop­

ulation lives with a subsistence economic system based

primarily on shifting agricultural practices, i.e., swid­

den or slash-and-burn agriculture.

Swidden agriculture is seen as an ecological adap­

tation having evolved over centuries of use as the most

efficient method of exploiting the land given the resources

to work with, i.e., without acces to better agricultural

technology and/or technological knowhow. Traditional

swidden practices allow for a fallow period whereby the

land is allowed to naturally regenerate its vitality. In

the Guaymi territory, this fallow period requires some­ where between 12 to 20 years of non-use depending on the

level of deterioration of the soil. Due to low crop yields in conjunction with population increases and competition for land, this Fallow time has been decreased and a re­ sulting overuse o7 ]anj hns fol owec '. Overuse of 2and

40 among (,-aymi farmers aas evident as early as 1930 and it

has been a continuous process ever since. The effect has

been a relentle~ss increase of poorer soil and a corres­

ponding deLciorx Lion of crop yields.

A most marked effect- of the land's low productivity occurs during the so-called "Julitos," the months of June,

July, and August. During these months, the soil provides no yields and community stocks of agricultural. or other

foodstuffs is so depleted that little if any foodI is available. Food scarcity thus markedly increases mortality levels, especially among the newly-born and infant popu­ lation.

The production from the two corn harvest months

(September and January) and the one rice month (Septem­ ber) barely lasts through the end of May, whereupon the local population must resort to eating whatever is at hand, mainly bananas, yuca, name, and otoe.

The need to supplement subsistence resources has resulted in a Guayriii attempt to turn at least partially to a cash economy. Efforts to earn money can be seen through the Guaymi search for and participation in work at Governmert-orerated sugar mills (ingenios) in the vicinity of Santiago (the canital of Veraguas) and other places, especially duringi harvest Lime (afra)

41 The Gu'mi "il! do work rejected by inany other Pana­ manians. S-ar cane cutting, an especially burdensome task, that a'yS onIy $3 per day and does not include meals, is work oftern available to this Indian group. Resulting cash, after sustenance expenses, is not enough to properly feed the vllage population throughout the "Julitos."

Another and more traditional Guaymi method to acquire cash has been cattle raising. However, obsolete production systems and little if any technical innovation has often made this process less than successful. The settlement (asentamiento) of Buenos Aires has a cattle project with the support of MIDA and financing of BDA. This project, according to some accounting indicators, has been going ahead with some success. Details on this project are provided in the section on credit and cattle raising.

4 44.

42 2. Socio-Political Characteristics

The Village of Buenos Aires was founded early in the 1970's

:as a partial solution to the need for displaced Guaymi Indians from the Veraguas area to have a settlement option. In order to better understand the Guaymi condition of rejection by other groups, it is necessary to make reference to the socio-economic history of this ethnic group.

a. Population and Population Concentration.. The Village of Buenos Aires, without the inclusion

of any adjacent areas, is made up of 30 dwelling units.' / These units are concentrated over a rectangular surface approximately 400 mts. per side. Each unit (one family per unit) includes a small adobe hut and a vegetable gar­ den. Each unit is managed and operated independently by a family, although there is support for the community, e.g. houses are built by community groups rather than,-by indi­

viduals. Again, land tenure (outside the imediate house­ hold area) is communal property. Thus, cattle raising,

the fish pond;2 / and other potential production activities are operated under traditional Guaymi concepts of communal­ ity (see Sub-section 4a and 5a, b, and c).

1 /This figure shows considerable increase over the six dwelling units and a population of 29 persons in the same area in 1970 (data from 1970 National Census for Panama). s/The fish pond is the result of DINAAC/AID projects to spread cultivation of fresh water fish in rural a -eas of Panama and' increase protein intake of poorer segments of the population.

44 43 Greater Buenos Aires encompasses several adjacent

areas included- in the reforestation project (Sub-proyecto

Agroforestal do 13uenos Aires) This larqer area has a

total of 118 family units. However:, the scope of this

study is limited to the Vill.age of Buenos Aires alone,

since this village's inhabitants are the main beneficiar­

ies of electricity generated by the aforementioned 10 KW hydroelectric plant. Still, it must be mentioned that

school children from areas neighboring the Village of

Buenos Aires will be included in the benefits of electri­

fication since this school is the only one in the area

and is attended by children of these communities, who often must travel long distances to the Ciclo Basico (Grades 1-9)

in Buenos Aires.

The Buenos Aires' population has also begun receiv­

ing support Lhrough %arious exogenous mechanisms which

include the Ciclo Basico, electricity, etc. (see list of support projects affecting Buenos Aires, Appendix A.) b. Social Composition.

The Village of Buenos Aires is made up of Guaymi

Indians. The members of this coimnunity identified them­ selves as such to visiting IEC personnel. Buenos Aires was created by Guaymi leaders and the support of the Pana-

Man ian GOVe L I j'uo 0 1(2 '1- Lutc iens . The vi 1lage

44 operates as a magnet, attracting dispersed Guaymi from

the mountain areas. The general idea, as expressed by

Cacigue Miguel Mende , is to bring groups of Guaymi pre­

viously weak arid sca:tL-tered throughout the mountains closer

together, in ordcer to form a stronger unit capable of re­

questing and obtaining adequate support from the central

government.

Although the Guaymi population does not remain as

racially homogeneous as other Indian groups in Panama,

the Buenos Aires population is Guaymi Indian for all practical purposes, both in theory and in practice, e.g.,

(1) communal attitude permeates work practices, land tenure, and ways of life, resulting in cohesion among neighbors and agreed-upon respect for the authority of their elected leaders; and (2) unlike the internal vil­ laqe relationship, there is mist-rust and little communi­ cation with non-Guaymi qroups (see details under Id., Local Institutions). c. Local Institutions.

Three main systems of institutional functions must be differentiated in the Guaymi village of Duenos Aires.

The first is economic and mainly consists of the relation­ ship of population to lanC!. This rc-]a ionhip has tradi­ tionrall y bc-een a clear one. Laiid beloncgs 'o thc. community­

45 at-larr-, and both cattle raising and agricultural produc­

tion are the responsiility and assets of recognized mem­

bers of the comunity. Kin groups control access to par­

ticipation in community land rights. Residence is a prime

requisite for participation. Residence is determined by

the rule of virilocality. Active use of the land is another

factor influencing one's access, which often supercedes

the other conditions, despite the indicated theoretical heirarchy.

The second structure of institutions belongs to the

political realm. Here, as in the economic case (where

control of land was the issue), it is also kin group con­

trol that establishes the primary source of political power.

For the Guaymi population, it is kin group (not outside

structures or organizations] that make decisions and exert

influence on individual members.

It is the combination of the two above structures, po].itical and economic, that carry out a process whose objective is production and distribution of subsistence items. Kinsman helps kinsman. They work side--by-side and mutual support increases in times of need.

The third factor to consider is the institution or practice of interrelationship between the village and

46 outside groups. Not surprisingly, due to pressures brought

about against Guaynti groups, a good deal of distrust of

exogenous influences occur; yet, despite that condition,

the Guaymi are also aware of the need to gain support,

cooperation, and guarantees from institutions at the national decision-making level.

With regard to this last point, it must be mentioned

that some people interviewed referred to promises made them

regarding chc exchange of labor to construct the hydroelec­

tric plant for access tc the electric networr, for public use in the school, streets, and in the case of village dwellers, grid extension for household use of electricity.

A high level of expectation prevails among those whom the "labor/home-electricity exchange" offer has affected.

Any failure to very explicitly agree, whether in writing or verbally, and to live uo to the commitment, will re­ sult in much distrust of outside ins'-itutions. Thus, it is essential that careful evaluation of what can be deliv­ ered be made before negotiating any form of agreements with the Guaymi.

47 3. Evaluation of ricin.. Institutions

Despite aforementioned: conUitions of c.-treme poverty that

prevail in the Vii1ace oI L2uc',ncs Ai.res, it is cle-ir that exo­ genous agencies (jovcriiiment and donors) have started develop­ ment of suOp.'ort structures that will have siqnificant impact on the improvement of conditions among the ichayuii in this area.

Most significant structural inputs have been:

o Ciclo Basico (Basic Education Program) o Health Center o Fish Pond o Hydroelectric Plant o Road from the village to the Inter-.American Highway (in process of improvement approval) o Landing Strip for Small Aircraft

The listing of infrastructural services does not follow any order of importance format and each item will be discussed below.

a. Public Services: Water. Sewer Systems, Electricity.

Except for electricity, which is the subject of

Section 11-13 of this report and ,hich is in the process

of being installed, neither of the other services exist

in the Village of Buenos Aires. Drinking and cooking

water is obtained from two wells built within the village

or from rainfall. Bathinq takes place in the river.

Prevailinq ecconomic concli.t ions .ill not allow for any im­

provemen::U I n -.:z2o -::] -~-r in[ras ,c ur-e b~ Ji nc.

48 Electricity, however, should be a meaningful input.

It is not expected that.electricitv will have a benefic­

ial economic impact in a direct way, i.e., the small

quantity of electricity reaching the village and the

levels of industrial capacity presently existing in the

village do not lend themselves to any form of productive uses (Ceteris Paribus).

Newly-installed electricity seems to be appropriate

for home use, and, more importantly, for school training

of village population. Training should occur on two

levels, i.e., the traditional Ciclo Basico for children

and adult education in practical skills to be used for productive uses. The main area of potential activity identified is training of the adult population in lumber-­ related work. This is further expanded in Section II-B. b. Health.

Many illnesses affect the population of this Guaymi area. Several stories of diseases such as diarrhea, contracted by drinking river water, that caused death within a few hours, were heard. The chief of the asenta­ miento's older brother had died that way. Local medicines could not save him, and attempts to get him out to San­ tiago were not timly enough to prevent his Ceath.

49 A system of informary care and first aid to pro­

vide services for the students and the rest of the area

population exists within the Ciclo Basico. The person

in charge is a paramedic with two years of higher educa­

tion training. This individual is a Government of Panama

employee hired to fulfill the need for paramedical ser­

vices in rural areas. This health center will undoubtedly

benefit from the availability of hydroelectricity in

the area since this will be a means to refrigerate medi­

cine.

In addition to the public health facility in Buenos

Aires, community members seek the services of several "curanderos" located in surrounding areas, e.g., Serafina

Santos from Jacinto (neighboring area) and Ursula Basque

from El Tigre (neighboring area). These curanderos are

not the same as the traditional Guaymi Shaman but have

adopted more the style of the Latino curer who uses herbs

and store-bought remedies. Sra. Marcelina del Rosario

is a frequently called-upon midwife.

Common diseases afflicting the Guaymi community are

tuberculosis, influenza, diarrhea, gastroenteritis, and other intestinal ailments. Measles and whooping cough have 17een major killers of infants (combined with malnu­ trition).

50 C_ Education.

The level of education in the traditional western

world sense is undoubtedly very low among Guaymi Indians.

Their knowle ge of the Panamanian language, Spanish, is

often non-existent. This is especially true among the

women. In most family situations, the use of the Guaymi

Nobe o Movere (also known as the true Guaymi) or the other

Guaymi language, the Sabanero,-/ is preferred to Spanish.

Members of the younger generation were found to un­

derstand Spanish in all cases. This is easily explained

in terms of their access to formal education, a condition

that is expected to further improve with the establishment

of the new Ciclo Basico.

The Ciclo Basico responds to educational needs of

a population whose composition by age (compiled from

269 children sampled in Buenos Aires and adjacent communi­

ties, 1979 data)- is as follows:

Age Number Percent

Less than 1 Year 45 16.72% 1 to 6 Years 75 27.88 6 to 12 Years 91 33.82 13 to 18 Years 58 21.56

TOTAL 269 100.00%

"/See: Ierrera, Francisco, "La Zona Indigena dc Distrito de las Palmas, Veraguas y el Processo do Politisacion." 2/Inforination providc-i by Lic. irix D.1z, :EU?2J" £orestal Pro­ ject.

51 The above statistics reveal a general increase in

the population. The age bracket below 13 years increases

considerably, except for the 1 to 6 year range where the

increase is not as significant as in the previous and

following group, groups 1 and 3. That discontinuity in

the rate of growth of the population (that varies inverse­

ly proportional to the younger age bracket) was not ex­ plainable by preliminary observations; nevertheless,

that stark change does not seem to reflect si.gnificant

changes in the general trend toward population increase.

The role of education should be most significant in

delineating possiblk. areas of activity for the future of

the Guaymi community. However, education will have to in-­

clude not only traditional education for children, but

should also consist of a pragmatic program geared toward

improving the population's ability to use technology, es­

pecially in areas related to agricultural and agro-indus­

trial te..hno].ogy that could make the individual employ­

able or self-productive in activities within his/her com­

munity and immnediate surroundings. Otherwise, a growing

populaLion, under the economic pressures of the feeble

system that prevails, will resort, as it often happens

under those circumstances, to migrate to other national

areas and eventually to the city, where scach for better­ ment is often soucghL but not frecluently found.

52 Cprtral to the develoi-ment of energy sources and other

infrastructure is the activation and promotion of produc­

tive uses of technology that should help develop employ­

ment sources and cstablish, as a consequence, schedules of

incentives to retain the population and make them productive.

Ciclo Basico Facilities. Presently, three structures

are the main physical components of the Ciclo Basico (Basic

Education) Institution in Buenos Aires. This institution, whose buildings were constructed as an AID/Government of

Panama (Ministry of Education) project, respond to educa­

tional needs from the first to ninth grades for the popu­

lation of Buenos Aires and adjacent areas. The three buildings already constructed have the

following functions:

Building 1: A. Dormitory for intern students who must sleep in the school since their homes are hours away from Buenos Aires. B. Machinery Workshop. C. Work Equipment and Machinery Storage. This building is used for all above pur­ poses without much physical separation for the above-mentioned functions. The only real separation is an independent wing that has the exclusive function of housing female students and female teach­ ers. Teachers are not members of the permanent local population. They are normally people hired by the central government to serve anywhere in the country. Those living in Buenos Aires, if not married, often reside at the school's lodging facilities.

53 Building 2: A. Kitchen and Dining Room

B. A section of the same structure separated by walls for classroom.

Building 3: A. Infirmary

B. Classroom

The function of the Ciclo Basico is to provide for­

mal education for children of families from several towns

in Buenos Aires and adjacent communities. However, there

is potential, as mentioned above, that this role could

be expanded to practical training in areas related to pro­ duction and improvement of village conditions.

d. Credit Institutions.

There are no permanently established credit institu­

tions in the Village of Buenos Aires. The only banking

service available to this community comes from an agri­

cultural loan program administered by the Banco de Desarrollo

Agropecuario (BDA) , a. funding branch of MIDA, through a

representative who visits Buenos Aires and other locali­ ties according to need.

Through this credit program, Buenos Aires, as a com­ munity made up of 25 associated members (socios), secured a $27,110 loan. The loan consisted of credit to purchase

Cebu c.ttlc. The project now has 135 head of these cattle

(see Inventory Chart 0n Uhe following page)

54 The present balance of the loan, after three years

of existence, is $19,000. -1 / According to the same source,

25 to 30 one-yea-ir--cld cows are sold at $190 each. From

that level of sales, total revenue is somewhere between

$4,750 and $5,700 yearly, which would be confirmed by

the reduction of the loan by approximately $8,000 in three

years. However, this year's payment seems to be having

difficulties, resulting from the inability to sell the

number of cows needed to accumulate the amount due.

An inventory of project assets shows the following

numbers :/

INVENTORY CHART

No. of Cows Classification Price Per Unit Total

51 Grown Cow $250 $12,750 29 Heifers 275 7,975 10 Heifers 180 1,800 18 Calves (female) 100 1,800 15 Calves (male) i00 1,500 7 Young Bulls 170 1,190 5 Bulls 600 3,000

TOTAL $30,015 i/Information provided by Heriberto Zambrano :odriguez (the Caciclue's nephew and head of the cattle project).

2-/ Inventory done by Mr. Sandalic Arias '!onrroy (BDA Represen­ tative) and provided by BDA personnel/Panama City.

55 Despite difficulties resulting from lack of techni­

cal knowledge, low-gradq land, and lack of adequate fer­

tilizer, etc., the project seems to be going ahead.

However, there is the idea that additional credit

should be used to develop a poultryI / and swine project

communally managed in Buenos 2Aires. Despite some prob­

lems with the present BDA project, such as a delay in

this year's payment due to marketing difficulties, it

should be pointed out that the following monetary results

show rather satisfactory loan repayment and capital for­

mation based on cattle raising and selling.

(In U.S.$) (In U.S.$) Project Year Calendar Year Loan Balance Capital Formation

0 1979 $27,011 0

2 1981 19,000 11,000

3 1982 ? ?

Although not enough information has been made available

to calculate internal rates of return on this project,

it is still possible to see that $8,000 paid in princi­

pal and a net capital formation of $11,000 for the com­

munity express success in Lhe enterprise.

1 /Availabi]ity of electric energy would be useful for that purpose. However, it would bo necessary to consider the economics of extromely small production systems for a populat ion of only 30 famolies and little prodnct market­ ability poten ti Il.

56 e. 04 her Infrastructure.-"

Essential infrastructural components to support dev­

elopment already exist in Buenos Aires. Nevertheless,

these components require improvement, better interpreta­

tion, and careful planning in order to achieve clearly­

stated objectives.

Hydroelectric Plant. Construction of a 10 KW hydro­

electric plant is already completed. The uses of elec-­

tricity will be mainly for the Ciclo Basico, street lamps,

and residential lighting. Specific uses of electricity

at non-peak hours is recommended in Section II-B.

Landing Strip. A 900-meter unpaved landing strip

diagonally crosses the central area of Buenos Aires. The

village houses are spread outside the large rectangle

whose surface is bisected from NW to SE by a strip of

land adequate for small aircraft. Athough very seldom

used, this facility has had uses in the past to carry

food and equipment and may again have practical meaning

in the future.

Road. Plans to improve/construct a road from the

Inter-American Highway to Buenos Aires are under study 2/ by AID/Government of Panama.-­ l/The underlyinq foundaLion or basic framework (as of a sys­ tem or organization), permanent installation.

2/Se e 7

57 Reforestation. From a requested $750,000, the ac­ ual RENARE budget was approved at $250,000 for 1981 pro­ grams in the Province of Veraguas. This budget is to support five reforestation projects which are:

o San Roquito o VaJles Canaza o Buenos Aires o Alto IHuarumo o Santa Fe

The Buenos Aires project has the following objectives:

o Carry out reforestation work.

o Make people aware of the importance of refores­ tation and wood conservation.

o Assistance to the conununity in areas connected with handicraft (weaving, dressmaking, etc.) development.

o Education (food preparation, vegetable garden cultivation, teaching basic writing and reading whenever appropriate).

The RENARE project is managed as shown on the following page.

58 PROGP,7C'4 Resident in Santiago CHIEF (MIDA Headquarters)

PROGRAM% Resident in Santiago ASSISTANTI

FIELD Resident in Buenos

SUPERVISOR I Aires (all personnel ____] belo,, are also Bueno., '-- Aires' residents while employed in project)

REFORESTATION SOCIAL OTHER PROMOTI ON DEVELOPMENT ACTIVITIES (In combination with FAO)

\------v COMMUNITIES NO. OF FA4ILIES 7 PERSONS PER FAMILY Buenos Aires 25-30 175-210 Chumico 15-20 105-140 Piro #2 10-15 70-105 Jacinto 12-17 84-119 El Tigre 13-1.6 91-112 Caruya 8-12 56- 84 Tierra Blanca 8-12 56- 84 El Naranto 10-13 70- 91

59 What becomes a question is the economic fiture of

the area once the reforestation objectives are attained.

Most significant for the area woul.d be planning the

derivation of industry from existing wood and consecutive

and constant reforestation schedules. However, the es­

tablishment of industry will require a combination of

exogenous and indigenous resources. It is at this point

important to consider that planning of wood-related in­

dustry should include the following components:

o Definition of industry

o Consideration of main factors of production - land - labor - capital - energy - management

Each factor of production should be considered in de­

tail. However, two elements that require special attention

are enterprise funding and enterprise rights of control or

ownership. It is suggested that this condition be further

analyzed and that co-ownership of enterprise be considered where the Guaymi population becomes a partner along with

an exogenous agency or entrepreneur for the development of

an economic (business) project. Under a scheme of this

type, the Cuaymi population could be t'ained at the Ciclo

Basico ini the use of Lools, electric and others, that would

enhance the deve.opment of lunmber busi:ess enterprises.

60 4. Socio-A- throno] oqi cal Characteristics

a. Land Tenure and Lancd Use. Traditionally, land is not individually owned but

rather collectively owned by kin groups who control

access. Individual usufruct rights depend primarily

upon one's residence and kinship descent. Residence is

determined by the rule of virilocality. Active use of

the land is another factor influencing one's access.

Theoretically, someone else may be more entitled to a

piece of land (by residence and descent) but active use

supercedes. The control exerted by the kin group is ex­

tremely important to understand as it is the basis for

one's existence in the subsistence economy. This kin

group control also is the primary source for political

power in Guaymi society. It is primarily within the kin

group (not outside structures or organizations) that de­

cisions are made and influence exerted on individual

members. .The traditional Guaynmi economic system is geared

principally to the distribution of subsistence items.

One is expected to help a kinsman in time of need. This

is done to insure that aid will be returned when needed.

This incorporates the concept of labor exchange as well.

61 This is still to be witnessed by the construction proce­ dures of houses in Bluenos Aires. In an otherwise harsh and uncertain envi!.onment, security is obtained through the vehicle of kin&hip. A qeneral rule is that the more a subsistence-based economy moves towards a cash economy the greater the occurrence of abuse of the traditional system of reciprocity. This will certainly be the case of Buenos Aires as the community moves closer to a cash economy. b. Socio-Political Organization.

As mentioned before, t aditional political power among the Guaymi is centered within the kinship group.

This has proven to be an adaptive mechanism for the sur­ vival, of isolatea small groups dispersed over wide areas of land. The overall politiCal organization as such is neither centralized nor hierarchical. Political struc­ tures outside the kin group have had little effect upon the society as economic production is geared to the kin group level and is not dependent upon a higher level of organization.

Since The 1960's, there has been a political struggle among certain Guaymi seeking power outside the context of the kin group. The three Caciques of the provinces

62 of Chiriqui, Bocas del Toro, and Veraguas have been recog­ nized by the Government of Panama. There are elected representatives (Guayini) as well who are by law officials of the Panamanian Government, but the Government to date has chosen to deal with the Caciques and basically ignore the elected representatives. The Cacique of Chiriqui has appointed a "cacique suplente" (assistant) but the others have not. They instead have representatives in the capital city. in addition, the provincial Caciques have "jefes inmediatos" who are supposed to act as local community chiefs. This group is not legally recognized by the Panamanian Government. A great deal of political in-fighting has resulted from "jefes inmediatos" jockey­ ing for position and power, especially those with long­ term association with individual Caciques. Evidently the means to power through the vehicle of the cult of

Mama Chi has diminished even though General Torrijos formally recognized the Mama Chi leader. Other leaders in the Mama Chi hierarchy have returned to the traditional ways of Guaymi shamanism and represent probably the most conservative elements of Guaymi society - advocating a withdrawal from "ladino" society and a complete return to traditional ways.

63 Gi3-en all this, the kin group is still the most important source of political power. It has been esti­ mated that no more han a third of the Guaymi people fol­ low the direction of the Caciques at any one time.

64 5. Economic Characteristics

a. Overall Analysis.

The analysis of economic characteristics was con­

ducted on three different levels. The first was a gen­

eral observation tour of the village and brief visits

with village leaders. Living conditions (house construc­

tion), hygiene levels, scarcity of household objects,

and general environmental appearance clearly revealed

a society existing in a weak, subsistence economic sys­

tem.

The second cycle of information gathering consisted

of acquiring data by interviewing village leaders avail­

for discussion and by interviewing as many families as

possible to establish a primary data base that showed the following results:

Dwelling Units: 29 (30 including house/store*)

Other Buildings:

School 1 Infirmary 1 MIDA 2 Store* 1

Total inhabitants of the village were estimated at 169

persons. Inhabitants of Buenos Aires and surrounding

65 areas (including the communities of El Chumico, El Piro

#2, Tierra Blanca, El Tigre, El Nararijo) were estimated

at 118 family units, with a total population of 642 people.1/

The only two communities out of the above-mentioned

ones with homogenous, i.e., Guaymi population, are Buenos

Aires and Chumico. The rest are ethnically mixed (Indian/ Black/Spanish).

Interviews with Buenos Aires residents showed the

following economic characteristics.

b. Economic Production.

The population of Buenos Aires is involved in the

following economic production activities.

(1) Subsistence Gardening - Using small plots, nor­ mally attached to their small houses, (2) Zafra - Male members of the family would work a few months of the year in sugar cane cutting. (3) Communal Cattle Raising - Most families co-parti­ cipated in communal ownership of cattle raising on village land.

(4) RENARE Hiring of village personnel in reforesta­ tion program.

Revenues derived from these activities are summarized on the following page.

./Diaz, Sarix, "Situacion Socio-Economicade los Beneficiarjos del Programa Numdial de Allmentos, Sub-.Proyecto Agroforestal de Buen.c- 7ires. RENARE. Dic. 1979.

66 ECONOMIC PRODUCTION

Product % Consumed % Sold or Traded

(1) Subsistence Garaeniiig Maiz $ 70-80% 20-30% per family (normal Rice ) production unit = Yuca 1 Ha.; those that Bananas ! have 2 Ha. are con- Otoe s- 100% 0% sidered to he well- Beans Provides income es­ off in terms of food timated at $100-150 availability (except per year per family. for Julitos).

(2) Income from sugar cane cutting (Zafra) per in­ dividual Taking 6-day week; per. $144 per year minus (-) food expenses. of 2 wks. every 3 mos. at $3/week-day.

(3) Dividends per family from the following communal work: Cattle Raising Cattle raising dividends in 1981 were $10 to $20.1/ Telapia Production Good potential to improve protein in­ take of population. Requires more systematic method of rest;ocking of telapia (hybrid species used).

(4) RENARE's Reforesta- Employ members of the local population tion Project and pay $3 per day plus a bag of food (consisting of milk, oil and sardines), and, most hiring is by the day accord­ ing to need. 1 Data provided by Heriberto Zambrano Rodriguez (Jele del la Asentainiento/Cattle Raising Project) and confirmed by other people from the community.

67 SUMMARY OF ESTIMATED INCOME:

Estimated subsistence production barely meets minimum food needs.

Basic food production for one-fourth year (Julitos) requires exogenous products and consequent use of whatever cash is ivailable.

Estimated cash income per family varies from $100 to $300 per year. 1/

There is an obvious absence of cash crops in the

area. Neither coffee nor fruits (except for bananas) are

produced and commercialized to derive cash revenues, as

happens in other mountain communities. Yet, only 15 kms.

from Buenos Aires, at El Jagua, Las Arenas, Cerro Tolica, Tierra Blanca, Guayarito, etc., there is coffee production

(a cash crop) due to the existence of better lands and

more agric'iltural knowledge.

c. Women's Roles in the Economic Process.

Not unlike the men, women participate in the culti­

vation of their land. However, unlike the men, they do

not participate in the Zafra or activities that take them

far away from the household. However, women are often

found working the fields along with their husbands on

both the flatltnds around their houses or on the more dis­

tant and steep mountain slopes characteristic of the area. l/Income per capita for Panama 4.s U.S. $1,260 (Source: 1980 World k Atlas, !.ashin-ton, D.C.).

68 Other activities women labor in are household management

and clothes, amacas, chacara (bags),and hat making. Be­

sides those activities, the women are, in general, house­ wives responsible for various household chores. Guaymi

dressmaking for industrial and commercial purposes is

an area of activity not only contemplated by development

schemes but also actually implemented at present under

sponsorship of a U.N. project. This project has affected communities other than Buenos Aires more extensively and continues in a process of expansion throughout the area.

However, discussion with experienced personnel from var­ ious organizations dealing with marketing support for

Panamanian handicrafts indicated that the demand for dresses fluctuates too much in both the domestic and in­ ternational markets. Therefore, there is not a firm mar­ ket on which the Guaymi population should rely.

A better understanding of the Guaymi dressmaking market was acquired in the neighboring area of Alto de

Jesus (on route from Buenos Aires to the Inter-American

Highway). Buenos Aires inhabitants had not been involved in the dressmaking project with the U.N., and, thus, it was necessary to observe the other area where the U.N. project was known to be in the process of implementation.

69 The U.N. program teaches Guaymi women in Veraguas

to use hand se,,.:ing machines to make dresses. Of course,

traditionally, dresses were handsewn only. The new sys­

tem clearly reveals technification and loss of valuable

"handmade" traits so much appreciated in original handi­

crafts. Still, good design and attractive colors make

these dresses interesting items for the markets of Panama

City and foreign countries.

Costs involved in making a dress are as follows:

$10-15 for fabrics and other materials, one to two days of work. Selling price is $20, which results in profit

(or wages) of $5 to 10.

The U.N. project, as well as other development schemes, including RENAPE's, are establishing a marketing process that will allow products to go directly from the producer to the city outlet or exporter rather than using middle-­ men. This will increase the profitahility of the opera­ tion. Still, the problem connected with potential de­ creases in de;:and requires consideration before further investment is made in this line of activity.

70 B. PECOMMENDATIONS AND POTENTIAL HYDROELECTRIC ENERGY USES

Besides the uses of hydroelectricity determined by AID/IRHE

for the Village of Buenos Aires (Ciclo Basico, street and house­ hold illumination, and refrigeration of essential supplies such as medication), the following productive possibilities have been identified:

(1) Use of electricity for processing foodstuffs for preser­

vation throughout long periods of time. This task would

consist of either vacuum preservation or dehydration of

various products that are produced with some surplus,

which is wasted, and could well be used during the Julitos

(months of food scarcity - June, July, and August). This

is a productive use of energy that can be adopted in

Buenos Aires and Pueblo Nuevo.

(2) Uses of hydroelectric energy for training of local popu­

lation in activities connected with lumber industry needs.

This could only be possible provided that a macro-plan

combining reforestation work, future investment in indus­

try, and sharing of production ownership and rights

between local and exogenous groups is established. Plan­

ning an agreement for this kind of complex project requires

further study of legal and economic questions.

71 APPENDICES APPENDIX A

LIST OF DEVELOPMENT PROJECTS FOR PUEBLO NUEVO AND BUENOS AIRES

Pueblo Nuevo Buenos Aires

o Road Improvement/Construction o Road improvernent/Construc­ tion (see Appendix E) o Hydroelectric Power o Hydroelectric Power o Reforestation o Reforestation (see o Fish Pond Appendix D)

o Credit (Coffee Production o Fish Pond and Distribution) o Credit (Cattle Raising) o Cooperative Organization for Coffee Production and o F.A.O. Food Production Distribution o U.N.D.P. Handicrafts o Ciclo Basico (Dressmaking) o Infirmary o Ciclo Basico

o Infirmary

A-I APPENDIX B

(1) LIST OF VILLAGES' RESIDENTS INTERVIEWED:

PUEBLO NUEVO

(Family Heads)

Piedras Gordas Side Pueblo Nuevo Side

1. Julio Guevara 15. Elieser Rodriguez (Jr.) 2. Ezequiel Valencia 16. Julio Ortega 3. Apolonio Guevara 17. Elieser Rodriguez 4. Ruben Lopez 18. Luis Rodrigucz 5. Placido Urriola 19. Alberto Ortega 6. Agenaro Urriola 20. Victor Lopez 7. Abraham Ellis Casa (Edif Comunal) 8. Sebastian Fer-nandez 21. Mario

9. _ Fabian 22. Arturo Rodriguez 10. Clerentina V. de Ellis 23. Tino 11. Secundino Urriola 24. Lazaro Ortega 12. Jose Bonilla 25. Alberto Ortega 13. Virgjinia Gonzales 26. Domiciano Ortega 14. Hernando Arrocha 27. Bernardo Ellis 28. Eligio Ortega 29. Vicente 30. Romolo Lopez 31. Jurentino Rodriguez 32. Joaquin Rodriguez 33. Dalu Rodriguez 34. Jose Rodriguez 35. Eutacia 36. Teofilo Tejada 37. Felix Lopez 38. Rogelio Rodriguez 39. Pacifico Rodriguez 40. Gabriel Cisneros *Plus 10 houses in the "abajo" area.

B-i MA7IN SOURCES OF INFORMATION (INDIVIDUALS) FROM BUENOS AIRES

Cacique Miguel Mendez Heriberto Zambrano Rodriguez Jefe Asentamiento Sra. Alejandra Agapito Cortez Celestino Mendez Cubertino Martinez J.L. Carpintero Magdaleno Martinez

TB- 2 (2) LIST OF GOVERNMIENT OF PANAMA AND DEVELOPMENT ORGANIZATIONS' PERSONNEL INTERVIEWED:

Ing. Goinez (Jefe R'forestation Program) , MIDA Sr. Eugenio Navarro, Region f!2, MIDA Ing. Luis Humnberto Pilly-Programa Reforestation, MIDA Sr. Cesar Almanza, Programa Alimentos (MIDA/FAO) Srta. Sari:.: Diaz Sr. Francisco Herrera (antropo] .) Sr. Gabriel de Saint Malo (BDA) Sr. Sandalio Arcio Monroy (BDA) Sr. Climaco Perez (contraloria, Panama) Ing. Josefa Arroyo (Vivienda) Sr. Pedro Martinez (Nutricion) Sr. Cirilo Diaz (MIDA)

AID PERSONNEL INTERVIEWED: Ing. Julio Villafane Ing. Lynn Sheldon Mr. Stan Nevin Ing. Guillermo Riley Ing. Jose Sandez Ing. Jesus Saiz

B-3 APPENDIX C

COMPOSICION DE LOS SECTORES PRIMARIO, SECUNDARIO Y TERCIARTO, POR R.24A DE ACTIVIDAD ECONOMICA (GRANDES SECTORES ECONOMICOS) l/

Sector primario:

Agricultura, caza, silvicultura y pesca.

Sector secundario'

Explotacion de minas y canteras Industrias manufactureras Electricidad, gas y agua Construccion

Sector terciario:

Comercio al por mayor, al por manor, restaurantes y hoteles Transporte, almacenamiento y comunicaciones Establecimientos financieros, seguros, bienes inmuebles y servicios prestados a las empresas Servicios comunales, socialcs y personales

Zona del Canal de Panama

Actividades no bien especificadas

"/Contraloria General de la Republica. Direccion de Estadistica y Censo. Censos Nacionales de 1970. Vol. III, Compendio General de Poblacion. Pag. 176.

C-1 APPENDIX D

REFORESTATION PROJEC.' PERSONNEL

Management and Administ-ration

3 Professionals 7 Technicians 3 Administrative Personnel 3 Secretaries 6 Mechanics and Heavy Equipment Operators

Subproject La Yeguada

8 Technicians (1 Professional) 2 Home Improvement Specialist 1 Driver 26 Laborers (Local)

Subproject Also Guarumo

2 Technicians 1 Secretary 1 Home Improvement Specialist 1 Driver 10 Laborers (Local)

Subproject Los Valles

3 Technicians 1 Home Improvement 1 Driver 15 Laborers (Local)

Subproject Buenos Aires

1 Technician 1 Home Improvement Specialist 14 Laborers (Local)

Subproject de Ola 4 Technicians 1 Administration 2 Home Improvement Specialist 11 Laborers (Local)

Other Pef'onnel (!,d .)_Paid by Project 14

D-1 Summary ' 4 Professionals 4 Administrative Personnel 25 Technicians 4 Secretaries 7 Home Improvement Specialists 3 Drivers 6 Mechanics and Heavy Equipment Operators 82 Laborers 14 Other

149 TOTAL

D-2 APPENDIX E PLPAN DE CAIINOS PARA AREA INDIGENA DE VETAGUAS.

CAMINO NO. 1

Los Ruices-El Prado-Alto de Jesds-La Cucurucha-Vigul-Barrig6n Chumico-Buenos Aires.

Distancia: 30 Kil6metros.

Este camino fu6 iniciado en 1972 bajo la responsabilidad del Ministerio de Desarrollo Agropecuario, con el fin de promover algunos Proyectos Agropecuarios.

En 1974 el primer corte del camino lleg6 a Buenos Aires, con el fin principal de implementar la Reforma Educativa a trav~s de un Centro de Educaci6n BApica General. El Ministerio de Salud construy6 un Subcentro de Salud y el. Ministerio do Desa­ rrollo Agropecuario, inici6 los proyectos de Porcinocultura, combinados con el Proyecto de Piscicultura. Adems, inici6 programas de Reforestaci6n.

Todos estos Proyectos han sido mantenidos a un alto costo en consumo de combustible y mantenimiento de vehfculos y con una asistencia Tdcnica mediatizada, por las dificultades que presen­ ta el camino, especialmente en la 6poca lluviosa.,

Estimamos que los sobrecostos para dar seguirniento a estos Proyectos a consecuencia del camino, se aproximan a los /20,000. anuales.

El Gobierno ha invertido en este can'ino a trav6s del MIDA y a trav6s de los fondos de los Representantes de Corregimientos, aproximadamente F/ 100.000. (cien mi. balboas)- sin embargo, es necesario que este camino tenga las caracterfsticas que permi­ tan el trinsito normal todo el ago, para vchfculos de trabalo, de tal rz-era que las Inastitucicncs dcl Fstado qLe realizan pro­ yectos en esta 6rea,. Pu-canr dar una asistencia efectiva y eccn6­ mica a dichos Proyectos. E-I1